Table of Contents
Focusing on control and access, we can divide crypto wallets into two general types: Centralised and Decentralised, which we’ll elaborate on here.
Decentralised crypto wallets come in two types: Hot and Cold, according to how they store public and private keys. Hot and Cold wallets include some subcategories as follows.
Let’s learn all about the Hot and Cold crypto wallets.
Hot wallets are called hot as they are connected to the Internet, meaning you can access them round the clock. But, being online means they are open to scams and hacks, meaning they are riskier to use.
Hot wallets are online and based on software, i.e., they can be used on PC, cell phones, web versions, and extensions.
Providing online access from any device anywhere in the world, top Hot crypto wallets are preferred by traders and those who want to keep a constant eye on their investments.
As mentioned above, Hot wallets include Software, Desktop, Mobile, and Online (Web) wallets. Let’s check some examples of each.
Maintaining security is one of the greatest measures you need to take before choosing a Hot wallet, so choose the platforms guaranteeing high security.
So, after learning the main features of Hot wallets, let’s move on and see what Cold wallets are.
Learn more: What Are Blockchain Wallets And How To Use Them?
Unlike Hot wallets, Cold wallets are not connected to the Internet and store crypto assets offline; that’s why they are called cold.
Cold wallets work offline to increase security and avoid the scams and hacks that happen to Hot wallets.
Cold wallets come in three general forms, Hardware, Paper and Offline wallets.
While top Cold wallets are almost immune to online hacks, they may get stolen physically, lost, or damaged! So, it’s essential to keep them in a safe place, actually, in a safe! Safekeeping measure aside, Cold wallets are great for storing large numbers of cryptocurrencies.
So, now you know the main types of crypto wallets and have a good knowledge of their pros and cons and how each one can be used. Let’s speak more precisely, focus on children, and see which type of crypto wallet is best for your child.
The essential factor to consider about the best wallet for under 18 is security, as the children may not know enough cryptocurrencies and wallets, which increases the risks.
Three of the most common wallets are Hot Mobile Wallets, Hot Desktop Wallets, and Cold Hardware Wallets. The following table summarises their pros and cons to help you decide more easily.
As the above table indicates, Cold wallets, especially Hardware wallets, are safer for all users, especially those under 18. Also, note that younger children may not completely comprehend the importance of safekeeping private keys. So, your direct supervision as a parent or guardian is necessary.
Needless to say, if you lose your private keys or seed phrases, you can never access your wallet again, as they are not recoverable.
Although Cold wallets are safer, Hot wallets are easier to access, and a large number of users prefer to use them. No matter which of these two groups you belong to, we’re going to give you the lists of the top Hot and Cold wallets for those under 18.
One of the essential questions yet to be answered about crypto wallets for children is how to set up crypto wallets for a child. Let’s learn how in the following section.
Setting up a crypto wallet is not a demanding task, and you or your children under 18 can take the steps and set up the wallet. Here are the steps to set up crypto wallets for a child.
All in all, it’s time to teach the basics of crypto to your under-18 children as it is the new banking and even an investment that can save their future. To start the education, you can check Cryptologist with your children to head for the future together!
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